The budget 2013 was unveiled in the House of Commons among a crowd of rowdy members of Parliament, where the Chancellor stated that, "we are, slowly but surely, fixing our country's economic problems".
Chancellor, George Osborne announced that growth of the economy in 2013 would be 0.6% compared to the 1.2% he had predicted in Autumn.
It was revealed that deficit had fallen from 11.2% of GDP in 2009-2010 to 7.4% this year and the revised forecast is for the UK’s national debt to rise to 85% of GDP and not start coming down until 2017/2018.
Many of the cuts involved environmental companies such as Defra and DECC facing smaller budget allowances until 2015.
Mr Osborne’s announced his plans for the budget spending, which included £2.5 billion being spent on infrastructure paid for by a further increase on public spending. New businesses will benefit from the budget due to the introduction of tax credits for research and new measures aimed at preventing tax avoidance.
The good news was that the price of beer is to be cut by 1p instead of the 3p rise in beer duty tax that was planned; the rise in personal allowance has been moved to 2014, meaning that no income tax is paid by anyone on the first £10,000. There is also to be an introduction of tax free vouchers worth £1200 per child, as well as increased support for families with children on universal credit.
The scandal of the day involved an employee at the Evening Standard accidentally posting a picture of their front page on twitter during the Chancellors speech, which revealed details of the budget. The Evening Standard have since publically apologised for their mistake.
The budget has caused Politicians and economics experts to publicise their opinions, Secretary of State for Business, Vince Cable is believed to have said that if “very very radical housing proposals in the budget 2013 do not get the sector moving, nothing will”.
Economics editor of the BBC, Stephanie Flanders was tweeting throughout the Budget 2013 announcement and commenting on the chancellors borrowing figures, tweeting “Chancellor right to say borrowing has fallen since 2010 - but borrowing forecast for the entire parliament has risen by at least £140bn”. Business editor of the BBC, Robert Peston, joined Stephanie in tweeting updates of the budget 2013 throughout the speech.
Meanwhile Jo Johnson used the social media site to show support for budget 2013 by retweeting Federations of Small Businesses tweet that said “We are pleased Gov has listened to the needs of small firms”.
Copyright Speakers Corner 2016